The eastern suburbs of one capital city are leading the charge in driving property values upwards post-global financial crisis.
Suburbs along the Eastern Freeway are among Melbourne’s best-performing markets, with upgraders and foreign dollars boosting their post-GFC recovery, a report from CoreLogic RP Data shows.
According to the report, Melbourne’s median house value has climbed 14.7 per cent since its December 2012 trough, to $560,782.
Alphington, just north of the Yarra River and Eastern Freeway, showed the best growth in the past three years, with the median house value in the suburb rising 38.2 per cent to $1.18 million.
Five of the top 10 suburbs showing the highest growth were in the east, including Balwyn North and Box Hill, along the Eastern Freeway corridor.
Other top performers included Malvern East and Glen Iris, also in the east.
South Kingsville in the west (28.3 per cent), Upwey (26 per cent) and the growth areas of Williams Landing (37 per cent), Whittlesea (28.5 per cent) and Lyndhurst (26 per cent) rounded out the top 10.
CoreLogic RP Data head of research Tim Lawless said the middle price band was the strongest across Melbourne, followed by the premium end of the market. However, he said houses were performing better than apartments, partly due to a glut of apartments around the CBD.
“[There is] a lot of demand in high-end suburbs east of the city, such as Toorak and St Kilda,” Mr Lawless said.
He said the success of these areas can be attributed to a combination of upgraders and foreign dollars coming into the market. Foreign buyers were hard to quantify, he added, although they seem to be impacting the “uber high end” of the market – $3 million-plus.
The recovery in house values in Melbourne comes off a stronger base than other capital cities. Melbourne values dipped 6.5 per cent in the wake of the GFC, compared to the national average fall of 8 per cent.
Suburbs recording the biggest change in median value over past three years are:
Williams Landing 37%
Balwyn North 31.6%
Box Hill 31.1%
Malvern East 29.7%
South Kingsville 28.3%
Glen Iris 26%
Source: CoreLogic RP Data